Netflix Doesn’t Care About the Recession

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Some analysts think Netflix is particularly well-positioned to withstand a recession.

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That resilience is rooted in the idea that during economic downturns, consumers tend to cut back on more expensive forms of entertainment, like dining out or going to the movies, and instead opt for cost-effective options like streaming, making Netflix a go-to choice for budget-conscious households.

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Additionally, investors are optimistic about Netflix’s long-term growth potential. Per the WSJ, it’s aiming for a $1 trillion market capitalization by 2030, driven by its strategy to expand its international subscriber base in key markets like India and Brazil.

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The company is off to a hot start this year, outperforming a struggling broader market. Netflix’s shares are up more than 10% since the beginning of January, compared to an 8% loss for the S&P 500 and a 17% decline for the elite Magnificent 7 stocks.

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In a tough economy, streaming Netflix is the ultimate comfort food.